TOWN OF OCEAN CITY
FISCAL YEAR 2018 ADOPTED BUDGET
SERVICE CENTER FUND AND IMPOUND LOT
Fuel revenue is dependent on fuel cost, and the Energy Administration has projected that both gasoline and diesel fuel rates will increase from the rates budgeted in FY 17. Although the number of gallons of each type of fuel is anticipated to remain the same, overall fuel revenue will increase. Parts revenue has been projected to increase for FY 18. Labor rates for light equipment are set at $67 per hour and labor rates for heavy equipment are currently $86 per hour. It has not been necessary to increase labor rates for several years. Vehicle labor revenue has been budgeted at the FY 16 actual level.
Nineteen full-time employees are funded in the Service Center budget and there are two full-time positions in the Impound Lot. A Contract Specialist position was requested, but not funded. A step increase effective on January 1, 2018 has been included. Funding has been included for a seasonal vehicle technician. In the Impound Lot division, funding for seasonal staff and the estimate for Unemployment have been increased. Allocations for health insurance and pension contributions account for $45,127 of the increases in employee benefits for this division. A tool allowance of $500 per mechanic has been included in the Service Center budget.
CHANGES IN OPERATIONS:
Contracted Services expenses are expected to decrease. This category includes building and equipment maintenance, training and travel, printing costs and tipping fees, as well as other contracted services. Training includes attendance at the National Procurement Institute conference for one employee, online training for Purchasing staff, and automotive training for the mechanics. Building and equipment maintenance costs are projected to decrease as the FY 17 budget included $7,500 to repair the drains in the Fleet garage. Purchases of fuel and inventory are the major expenses in this department. Vehicle fuel is purchased by this department and charged to all other City departments as it is consumed. This expense is reflected in the vehicle fuel line item in all City departments and is a notable cost for Transportation, Solid Waste and Police. Vehicle fuel costs are expected to increase, while the number of gallons purchased is expected to remain stable in FY 18. The estimate for fuel purchases has been increased $188,978 from FY 17. Estimates of inventory for parts and supplies has been budgeted to increase $22,676 for FY 18. Supplies and Materials increase $57,700 in FY 18, and include the purchase of an electric forklift, $18,000, an a/c reclamation machine, $8,700 and a wireless lift for the garage, $31,000. Energy costs for this department are anticipated to decrease for FY 18. Vehicle expenses are projected to increase. Intragovernmental allocations for vehicle lease, IT services, and General Overhead increase for this division.